Quarterly report pursuant to Section 13 or 15(d)

PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT

v3.23.1
PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT
 3 Months Ended
Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT

3. PREPAID EXPENSES, OTHER CURRENT ASSETS AND LAND DEPOSIT

 

   

March 31,

2023

    

December 31,

2022

  
Deposits   $ -     $ 12,000  
Legal retainer     11,460       24,457  
Prepaid expenses     383,582       436,496  
Deferred offering costs     100,418       100,337  
Others     25,072       25,052  
Prepaid expenses, other current assets   $ 520,532     $ 598,342  

 

The Company wrote off a non-refundable deposit amounting to $12,000 which was related to a previous land purchase agreement.

 

On August 31, 2022, the Company signed a purchase and sale agreement with Stronghold Power Systems, Inc. (“Stronghold”), to purchase approximately seventy acres of land located in the City of Coachella as well as to have Stronghold complete certain permitting, zoning, and infrastructure work for a total purchase price of $4,300,000. The purchase price consists of:

 

  (i) $1,500,000 in cash due on March 31, 2023.
     
  (ii) A first stock deposit of $1,700,000 in prefunded warrants. The Company issued 695,866 prefunded warrants on September 9, 2022 to Stronghold.
     
  (iii) A second stock deposit $1,100,000 in prefunded warrants. The Company issued 450,266 prefunded warrants on September 9, 2022 to Stronghold.

 

As at December 31, 2022 the $2,085,960 of prefunded warrants were recorded under land deposit in relation to the Stronghold agreement.

 

As at March 31, 2023 the prefunded warrants issued were rescinded and the warrants were rendered null and void as the Company presented a termination notice to Stronghold and the value under land deposit also reversed.